Effects of income on earnings-related daily allowance

Income subject to withholding tax, such as wages, salary, incentives, holiday bonuses and holiday compensations, is taken into consideration when calculating the amount of earnings-related daily allowance. If we use a tax decision to make adjustments based on business income, we take earned income from business activities into consideration. Capital income is not taken into consideration.

Income is allocated to the adjustment period during which the income is paid. Application periods must be aligned with wage payment periods. If the wage payment period is a calendar month, earnings-related daily allowance is applied in periods of one calendar month. The unemployment fund receives income information from the Incomes Register, but we may need to request supplementation.

You must report your working hours in your application, even if you are not paid until the following month. For example, if your part-time employment begins in January and your first wages are paid in February, report the hours you have worked in January in your application for January.

Half of the income is taken into account. The protection amount EUR 300 is no longer available in the application periods starting from 1 April 2024. For example, if your income subject to withholding tax is EUR 800, the income reduces the amount of your monthly earnings-related daily allowance as follows:

EUR 800 x 50 % = EUR 400

EUR 400 / 21,5 = EUR 18,60

Wages of EUR 800 reduce the amount of earnings-related daily allowance by EUR 18,60 per day and approximately EUR 400 per month.

Upper limit of adjusted daily allowance

There is an upper limit to the amount of adjusted daily allowance. Wages paid by your employer and adjusted daily allowance paid by the unemployment fund may not be more than 100 percent, in total, of the pay on which your earnings-related daily allowance is based. For example, if the wages on which your earnings-related daily allowance is based are EUR 2,406 per month and you receive EUR 2,000 for part-time work, you will be paid approximately EUR 406 per month as adjusted daily allowance. If there was no upper limit to adjusted daily allowance, we would pay EUR 520 per month on average. The daily allowance is reduced by approximately EUR 114 due to the upper limit.

You can calculate the estimated amount of your adjusted daily allowance in the electronic services of the unemployment fund.

Adjusted daily allowance is paid for five days per week, including workdays. You must be registered as a jobseeker with the TE Office and look for full-time employment.

The maximum period accumulates slower on adjusted daily allowance

The accumulation of days towards the maximum payment period is slower when on adjusted daily allowance. The adjusted daily allowance (gross) paid for a period of a month or four weeks is divided by the member’s full earnings-related daily allowance, which gives us the number of days that count towards the maximum payment period. For example, if you receive EUR 1,000 (gross) as adjusted daily allowance for a period of one month and your full earnings-related daily allowance is EUR 70 per day, the number of days that count towards the maximum payment period is 14 days for the month in question.